Anbang Insurance Group Bids to acquire Starwood Hotels and Resorts Worldwide

0
542

The year 2016 has made a good start, especially for the Hospitality Sector in USA. The Chinese Giant Anbang Insurance group, leading a consortium on Monday made an unsolicited offer of $12.8 billion to acquire Starwood Hotels and Resorts Worldwide, which is one of the world’s largest hotel companies, it owns, operates, franchises and manages hotels, resorts, spas, residences, and vacation ownership properties under its 11 owned brands including the famous brands namely Westin, Sheraton, St Regis and many other.

Earlier in November 2015, Marriot International announced that it would acquire Starwood Hotels for $12.2 billion making it the world’s largest chain of hotels and now it remains to be seen how Marriot would react to this move by Anbang (pronounced as Ahn-Bahng). In an official statement, the board of directors of Marriot commented that, “it is confident that its deal with Starwood is the best course for both companies.”

Anbang Insurance have earlier in the year 2014 purchased the very famous Waldorf-Astoria hotel for around $1.95 billion which also marked it as the largest Real Estate Purchase in US from mainland China. It also made news on 13th March after it was reported that Black Stone Group has agreed to sale 16 hotels in US which belonged Strategic Hotels & Resorts Inc for an amount of $6.5 billion which also includes the Manhattan’s JW Marriot Essex House Hotel. Black Stone Group has earlier purchased the Strategic Hotels & Resorts INC in December 2015.

It is also speculated that considering the slowdown in the Chinese Economy and the strengthening US dollar, many private firms is looking to diversify their portfolio in International Assets and US Real Estate is viewed as a safe haven to invest.

It would be fascinating to see how the deal goes through between Anbang and Starwood. Anbang Insurance Group was founded 12 years ago and is headquartered in China with Mr.Wu Xioahui as the CEO of the Group with around 30,000 employees and more than $250 billion in Assets.

This may also signal rise in the Investment coming into US Real Estate Market after it is discovered that who all power players from China are involved who are zealous to invest their Wealth in the US Market and also what strategy would Marriot opt for in the event the deal strikes between Anbang and Starwood.

NO COMMENTS